Podcast artwork
TFTC: A Bitcoin Podcast
The Difficulty Adjustment (and Target) | Pierre Rochard, Center of Hash E006
Marty Bent • Technology
Marty Bent • Technology

Value for Value ⚡️

Attacks That Steal Revenue From Other Miners

Episode Summary

Pierre Rochard, CEO of the Bitcoin Bond Company, discusses the functional importance of bitcoin’s difficulty target and adjustment, how it works at a technical and practical level, and why it is relevant collectively to the energy consumed by the bitcoin network, transaction finality and the issuance schedule of bitcoin’s fixed supply. https://www.nasdaq.com/articles/bitcoin-magazine-launches-bitcoin-corporations-show-hosted-pierre-rochard-ceo-bitcoin-bond https://www.linkedin.com/company/the-bitcoin-bond-company/
... Show More

Transcript

Chapters

  • Difficulty Target & Adjustment
  • The Function of Mining
  • 21 Million Bitcoin
  • Bitcoin Inflation
  • History of Monetary Economics
  • Entering the UTXO Set
  • Miner's Function With 21 Million Bitcoin
  • Decentralized System
  • Mining Function and Final Settlement
  • What is a Subsidy?
  • Bitcoin Mining Company
  • Exploiting SPV Mining
  • Coinbase Transaction
  • Namespace Collision
  • Slightly Less Than 21 Million Bitcoin
  • Security Budget
  • Transaction Finality
  • Double Spend and Finney Attacks
  • Attacks That Steal Revenue From Other Miners
  • Security vs. Transaction Finality
  • Bitcoin's Security Budget is Decreasing?
  • Mining as a Cost Center
  • Transaction Finality as Decentralization
  • $20,000 Bitcoin
  • The Hashing Side of Bitcoin
  • Honest Node
  • Proof of Stake vs Proof of Work
  • One Dude in His Parents' Basement
  • Explaining the Difficulty Adjustment
  • Miners Competing With Each Other
  • Preventing Seniorage
  • No Proof of Authority
  • Bitcoin is Just a Database?
  • Censorship Resistance
  • Each Node Checks Block Validity
  • Case Study
  • Miners are Not in Charge
  • Game Theory
  • Concept of Most Work
  • Satoshi's Mining Setup
  • Block Every 10 Minutes
  • Difficulty as a Number
  • Difficulty Increases
  • Hashing is Random
  • Block Header Data
  • Summarizing Block Transactions
  • Bitcoin as Immutable
  • Transaction ID
  • Merkle Tree
  • Chaining Blocks Together
  • Building on Top of the Previous Block Header
  • Satoshi and the Genesis Block
  • Difficulty Target
  • Difficulty Target in the Block Header
  • Adjusting Back to 10 Minutes
  • How Miners Arrive at a Difficulty Target
  • Satoshi Picking a Difficulty
  • Probability of Finding a Number
  • Getting Heads Five Times in a Row
  • Average of the Difference Between Those
  • Significance of the 10 Minutes
  • Initial Bitcoin Issuance Schedule
  • Soft Fork to Remove the Subsidy?
  • Incentive to Co-Locate
  • Block Propagation Perspective
  • Adding to Metadata Overhead
  • Bitcoin Nodes Setting Difficulty
  • Bitcoin Timestamps Aren't Precise
  • Global End Bits
  • Mind-Boggling
  • Bitcoin Node Verification
  • More Work, More Power
  • Bitcoin isn't a Clock
  • Bitcoin Miners vs The Mining
  • Hash Power Metrics
  • Understanding Metric System
  • 1 Peta Hash
  • Exa Hash
  • Gigawatts and Power
  • Time vs. Power
  • If You are Mining...
  • High Level
  • Broadcast That Valid Hash
  • Building On Sand
  • You're Further in the Future
  • Work and Power
  • Machines Are Getting More Efficient
  • One-Third of the Texas Electricity Grid
  • Importance of Final Transaction
  • Ensuring That There's Some Cost To It
  • Profit Motive
  • Commoditizes the Bitcoin Mining
  • Currency System
  • It Has To Be Valid
  • To Ensure that We're Within the Frequency
  • Ensure There's a Period of Time Distributed
  • Limits Per Day
  • Scarcity Space
  • Power Consumed
  • More Compounding
  • Last Question
  • Fixed Monetary Policy
  • Difficulty Adjustment
  • Without the Fixed Supply
  • Centralized Time-Stamping Service
  • Solving Problems and Providing Value
  • There Is No Mining Going On
  • Death Spiral
  • 21 Million
  • Bait
  • There Are a Lot of Dollars Out There

    • Clips

      No results